Yesterday has been an interesting day especially for GOLD that has been pushing towards recent highs at 1764 and getting very close to test them (1763). The buoyant day started in the early morning with a gap up open at the levels of the highest recent close on 20th May (1748). After finding resistance at 1763, today XAUUSD is little lower, 0.27% on the day.
What has been even more interesting, has been the almost perfect INVERSE CORRELATION recovered with the USD: while the metal was pushing higher, DXA was heavy and lost the 97 handle.
Even if correlations continuously change and should constantly be monitored for finding confirmation in a single instrument price action, this is how the relationship between Gold and Usd should work long term: to a depreciation of the FIAT currency corresponds an appreciation of the ‘physical’, real storage of value.
So, if you are a Gold bud and looking for further appreciation, keep an eye on USD index as well for some hints